N.Y. Tax Law § 183-a: Metropolitan transportation business tax surcharge on transportation and transmission corporations and associations

§ 183-a. Metropolitan transportation business tax surcharge on

transportation and transmission corporations and associations.

1. The term "corporation" as used in this section shall include an

association, within the meaning of paragraph three of subsection (a) of

section seventy-seven hundred one of the internal revenue code

(including a limited liability company), a publicly traded partnership

treated as a corporation for purposes of the internal revenue code

pursuant to section seventy-seven hundred four thereof and any business

conducted by a trustee or trustees wherein interest or ownership is

evidenced by certificates or other written instruments. Every

corporation, joint-stock company or association formed for or

principally engaged in the conduct of canal, steamboat, ferry (except a

ferry company operating between any of the boroughs of the city of New

York under a lease granted by the city), express, navigation, pipe line,

transfer, baggage express, omnibus, taxicab, telegraph, or telephone

business, or formed for or principally engaged in the conduct of two or

more such businesses, and every corporation, joint-stock company or

association formed for or principally engaged in the conduct of a

railroad, palace car, sleeping car or trucking business or formed for or

principally engaged in the conduct of two or more of such businesses and

which has made an election pursuant to subdivision ten of section one

hundred eighty-three of this article, and every other corporation,

joint-stock company or association principally engaged in the conduct of

a transportation or transmission business, except a corporation,

joint-stock company or association formed for or principally engaged in

the conduct of a railroad, palace car, sleeping car or trucking business

or formed for or principally engaged in the conduct of two or more of

such businesses and which has not made the election provided for in

subdivision ten of section one hundred eighty-three of this article, and

except a corporation, joint-stock company or association principally

engaged in the conduct of aviation (including air freight forwarders

acting as principal and like indirect air carriers) and except a

corporation principally engaged in providing telecommunication services

between aircraft and dispatcher, aircraft and air traffic control or

ground station and ground station (or any combination of the foregoing),

at least ninety percent of the voting stock of which corporation is

owned, directly or indirectly, by air carriers and which corporation's

principal function is to fulfill the requirements of (i) the federal

aviation administration (or the successor thereto) or (ii) the

international civil aviation organization (or the successor thereto),

relating to the existence of a communication system between aircraft and

dispatcher, aircraft and air traffic control or ground station and

ground station (or any combination of the foregoing) for the purposes of

air safety and navigation, shall pay for the privilege of exercising its

corporate franchise, or of doing business, or of employing capital, or

of owning or leasing property in the metropolitan commuter

transportation district in such corporate or organized capacity, or of

maintaining an office in such district, a tax surcharge, which tax

surcharge, in addition to the tax imposed by section one hundred

eighty-three of this article, shall be computed at the rate of seventeen

percent of the tax imposed under such section for such years or any part

of such years after the deduction of any credits otherwise allowable

under this article; provided, however, that such rates of tax surcharge

shall be applied only to that portion of the tax imposed under section

one hundred eighty-three of this article after the deduction of any

credits otherwise allowable under this article which is attributable to

the taxpayer's business activity carried on within the metropolitan

commuter transportation district as so determined in the manner

prescribed by the rules and regulations promulgated by the commissioner.

2. The owning or holding in the metropolitan commuter transportation

district by a corporation, or by a trustee or trustees included under

this section within the meaning of the term corporation as hereinbefore

defined, of property shall constitute doing business in the metropolitan

commuter transportation district within the meaning of this section;

provided, however, that the owning or holding in such district by a

railroad, palace car or sleeping car corporation, business, navigation,

canal, ferry, (except a ferry company operating between any of the

boroughs of the city of New York under a lease granted by the city), or

steamboat or any other corporation formed for or principally engaged in

the operation of vessels included under this section within the meaning

of the term corporation as hereinbefore defined, of property used

exclusively in interstate or foreign commerce shall not constitute doing

business in such district within the intent of this section. However, a

corporation or such trustee or trustees shall not be deemed to be doing

business, employing capital, owning or leasing property, or maintaining

an office in the metropolitan commuter transportation district, for the

purposes of this section, by reason of (a) the maintenance of cash

balances with banks or trust companies in the metropolitan commuter

transportation district, or (b) the ownership of shares of stock or

securities kept in the metropolitan commuter transportation district, if

kept in a safe deposit box, safe, vault or other receptacle rented for

the purpose, or if pledged as collateral security, or if deposited with

one or more banks or trust companies, or brokers who are members of a

recognized security exchange, in safekeeping or custody accounts, or (c)

the taking of any action by any such bank or trust company or broker,

which is incidental to the rendering of safekeeping or custodian service

to such corporation, or (d) the maintenance of an office in such

district by one or more officers or directors of the corporation who are

not employees of the corporation if the corporation otherwise is not

doing business in such district, and does not employ capital or own or

lease property in such district, or (e) the keeping of books or records

of a corporation in such district if such books or records are not kept

by employees of such corporation and such corporation does not otherwise

do business, employ capital, own or lease property or maintain an office

in such district, or (f) any combination of the foregoing activities.

Provided, further, that a railroad, palace car or sleeping car

corporation, navigation, canal, ferry (except a ferry company operating

between any of the boroughs of the city of New York under a lease

granted by the city), steamboat, or any other corporation formed for or

principally engaged in the operation of vessels whose only activity in

the metropolitan commuter transportation district is (i) the maintenance

of an office in such district and for the employing of capital in such

district and (ii) the use of property exclusively in interstate or

foreign commerce, shall not be subject to the tax surcharge imposed by

this section.

3. The term metropolitan commuter transportation district as used in

this section shall be defined pursuant to section twelve hundred

sixty-two of the public authorities law.

4. Notwithstanding any contrary provisions of state or local law, the

tax surcharge imposed under this section shall not be allowed as a

deduction in the computation of any state or local tax imposed under

this chapter or any chapter or local law. Furthermore, the credits

otherwise allowable under this article shall not be allowed against the

tax surcharge imposed by this section.

5. The report covering the tax surcharge which must be calculated

pursuant to this section based upon the tax reportable on the report due

by March fifteenth of any year under section one hundred eighty-three of

this article, for taxable years beginning before January first, two

thousand seventeen, and on the report due by April fifteenth of any year

under section one hundred eighty-three of this article, for taxable

years beginning on or after January first, two thousand seventeen, shall

be filed on or before March fifteenth of the year next succeeding such

year, for taxable years beginning before January first, two thousand

seventeen, and on or before April fifteenth of the year next succeeding

such year, for taxable years beginning on or after January first, two

thousand seventeen. An extension pursuant to section one hundred

ninety-three of this article shall be allowed only if a taxpayer files

with the commissioner an application for extension in such form as said

commissioner may prescribe by regulation and pays on or before the date

of such filing in addition to any other amounts required under this

article, either ninety percent of the entire tax surcharge required to

be paid under this section for the applicable period, or not less than

the tax surcharge shown on the taxpayer's report for the preceding year,

if such preceding year consisted of twelve months. The tax surcharge

imposed by this section shall be payable to the commissioner in full at

the time the report is required to be filed, and such tax surcharge or

the balance thereof, imposed on any taxpayer which ceases to exercise

its franchise or be subject to the tax surcharge imposed by this section

shall be payable to the commissioner at the time the report is required

to be filed, provided such tax surcharge of a domestic corporation which

continues to possess its franchise shall be subject to adjustment as the

circumstances may require; all other tax surcharges of any such

taxpayer, which pursuant to the foregoing provisions of this section

would otherwise be payable subsequent to the time such report is

required to be filed, shall nevertheless be payable at such time. All of

the provisions of this article presently applicable to section one

hundred eighty-three of this article are applicable to the tax surcharge

imposed by this section except for section one hundred ninety-two of

this article.